The frustrating political stalemate in Albany appears to be inching closer to a resolution as the bickering begins to seriously impact the city.

Staten Island's two state senators say power sharing will break the deadlock, yet there's squabbling over whether both sides are truly amenable to a truce.

State Sen. Diane Savino (D-North Shore/Brooklyn) said today two bi-partisan committees are discussing ways to share control of the chamber. She sits on one of the committees.

"Power-sharing is the only workable solution," said Ms. Savino. "We need stability. We cannot continue to operate in this scenario. Members of the Senate need to realize the majority doesn't exist."

But Republican Sen. Andrew J. Lanza (R-Staten Island) contends some Democrats are resisting such a compromise or haven't gotten word of the Republican proposal from their leaders. Today, the Republican-dominated coalition distributed letters to all 62 state senators outlining its plan for an equal power split.

"There are various factions on the Democratic side of the aisle that can't come to an agreement," said Lanza. "Our side has been speaking with one voice. We come to the table and say, 'Let's split it down the middle.' You can't be more fair than that."

Coalition leaders said a deal needs to be reached Thursday from two proposals, while Democratic chiefs said there's no hard deadline for an agreement.

The political bickering has plunged the state Senate into legislative gridlock while threatening to financially cripple the city.

Mayor Michael Bloomberg on Monday ordered an immediate hiring freeze, including 250 police recruits due to be sworn in today. Bloomberg said the city is relying on new taxes the Senate failed to approve that would bring in about $60 million a month. Last week, the Senate also failed to renew mayoral control of city public schools. The Senate was thrown into turmoil when Republicans sought to take power in a June 8 legislative coup. GOP chief Dean Skelos took the title of majority leader, while renegade Democrat Pedro Espada Jr. took the title of Senate president pro tempore. Neither side recognizes the other's leadership claims.

The Senate has remained in a 31-31 standoff since then.

Today, Senators Hiram Monserrate and Ruben Diaz walked out on fellow Democrats who sought to open a regular session. The pair had no comment beyond saying they aren't abandoning the Democratic conference, but the power struggle must end and they'll talk about their role Thursday.

They met with Espada today. Espada said he expects several Democrats will act if the conflict isn't settled Thursday, but wouldn't specify what the action might be.

Monserrate had jumped ship with Espada last month, then quickly returned to the Democratic side.

According to Ms. Savino and the Republican letter, a compromise would feature chamber co-leadership which would alternate on a weekly or daily basis. Committees would have co-chairs, members' resources would be more evenly apportioned and bills could be brought to the floor easier.

Such a structure would force both sides to reach compromise on proposed legislation when they are deadlocked, said Ms. Savino.

Any agreement must remain in effect through the end of 2010 to prevent lawmakers from jumping from one side of the fence to the other before that year's elections.

"We want to prevent this from happening again," Ms. Savino said. "Out of this chaos can come a Senate that's more democratic."

Assemblyman Michael Cusick (D-Mid-Island), said senators need to put the leadership issues on the back burner and immediately take up the most pressing bills, such as those effecting the city's budget.

"I'm being non-partisan," said Cusick. "Someone needs to say, 'In this instance, we need to put aside what many people feel is a power grab and take care of business."

"I don't know that they understand how immediate this problem is for New York City," he said. "That has to be communicated to them -- that the city can't wait."

In any case, Titone said he couldn't countenance Espada, the subject of several ethics investigations, in a leadership position.

"There are concerns about Pedro Espada being in charge of taxpayer money," he said. "I wouldn't trust him with our money."

Assemblyman Lou Tobacco (R-South Shore) said a constitutional convention is needed to change how both houses of the Legislature operate and level the playing field between the majority and minority parties.

"What the people are seeing is the tip of the iceberg. It's truly dysfunctional up there," said Tobacco. "No business owner would last one day if they conducted themselves as leadership in Albany does. Both parties are equally to blame."